Price broke above the cloud in the previous trading session, changing the chart outlook to bullish. Conversion line and Base line had a bullish crossover and is hinting of a bullish price trend ahead. Lagging Span is above price of 26 days ago but is inside the cloud at the moment. MACD is bullish and is hinting at a bullish price trend. If price is able to stay above the cloud, it could be heading towards the next price resistance at $159.67 in the next 2-3 weeks.
Outlook Price broke below the cloud and reached a low of $123 on 8 March 2021. A second attempt at the low failed just above the previous low at $124.39. Last Friday, price broke above the Ichimoku reversal’s neckline at $135.44. This triggered an Ichimoku reversal just below the cloud. Conversion and Base lines had a bullish crossover last Friday, hinting of a bullish trend. Lagging Span is above price of 26 days ago but is below the cloud, unable to confirm the bullish trend. MACD had a bullish crossover earlier but is still in the bearish zone. We think price is likely to move higher to the Ichimoku reversal price target at $146.44 in the next 2-3 weeks.
After a low on the 28th May, price has been on a rally and is now near to closing a gap resistance at $288.80. There is a Base line resistance at $284.60 and cloud resistance $288.40. Fibonacci 50% of the decline from $323.40 to $250.20 comes in at $286.70. There is a strong resistance zone from $286.70 to $288.70. MACD is still bearish and this current rally could be a corrective rally. If price is unable to move above $289.00, it is likely to decline back to $250.20.
Strategy
$288.50 Short Sell
$256.80 Price Target
$294.50 Risk Management Stop
3 weeks Trade Duration
Qualcomm Inc Stock Code QCOM.NAS
Outlook
Price has corrected back to the start of the gap and the edge of the cloud. Price was unable to move above the cloud and has dropped lower yesterday, confirming a Bearish Star pattern. If price is capped by the cloud and the gap, it is likely to move lower to test the low of $62.80 again. MACD is still bearish and its histogram has started to change colour and turned lower. This could be a sign the correction is over and price is about to decline again.
